Which of the Following Is Not an Indicator of Fraud

question 95

Multiple Choice

Which of the following is not an indicator of fraud in the acquisition and payment cycle?

• A)Theft of inventory by employees.
• B)Inventory shrinkage.
• C)Large manual adjustments to inventory accounts.
• D)Excess inventory because of a production slowdown.

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Definitions:

Microchips

Small semiconductor devices containing electrical circuits that can perform calculations or store data, used in electronic devices.

Tires

Rubber-covered, air-filled cylindrical components that provide vehicles with traction and support.

Gain From Trade

The advantage obtained by countries, entities, or individuals from engaging in voluntary trade, due to the specialization and efficient allocation of resources.

Tire

A rubber covering, typically inflated or surrounding an air-filled tube, placed around a wheel to form a flexible contact with the road.